Nanaimo home sales decreased 13% in August 2018 when compared with August 2017. The average sale price increased 9%. The median house price was $529,000.

Parksville/Qualicum home sales increased 6% in August 2018 when compared with August 2017. The average sale price increased 3%. The median house price was $585,000.

Synopsis

In Nanaimo for August 2018 there were 379 active listings of single family freehold homes, which is 10% higher then August 2017.

The graphs below are for Nanaimo and show the average sold numbers and average sold price since 2014 (single family homes only.)

The following graph shows the % difference of the housing price index (HPI) from the same month 12 months ago. It is split into the different sub-areas and is for single family homes.

The following graph shows what is called the absorption rate. This is the time it would take the current homes for sale, to sell, if no new homes were listed, which indicates whether we have a sellers, balanced or buyers market. The 3 rates are based on 1, 6 and 12 months of sales data.

The Bank of Canada maintained its target for the overnight rate at 1.50% this morning. In the statement accompanying the decision, the Bank noted that the Canadian economy is evolving in line with its projections and that real GDP growth is expected to slow in the third quarter due to fluctuations in energy production and exports. Inflation is anticipated to come down from the 7-year high of 3% rate observed in July, falling back to 2% in early 2019. The Bank further noted that housing markets are beginning to stabilize following the implementation of the mortgage stress test. Overall, the Bank's assessment is that higher interest rates will be warranted to achieve the 2% inflation target, but policymakers are closely monitoring NAFTA negotiations and their impact on the inflation outlook.

With the threat of trade disruption looming from NAFTA negotiations, the Bank chose to pause its rate tightening cycle. However, strong economic growth over the past year has pushed the Canadian economy beyond its full-employment level, creating upward pressure on inflation. Rising inflation and an economy operating at capacity means that the Bank of Canada will continue on its rate tightening path, likely at it next meeting in October with an ultimate goal of the overnight rate returning to between 3% and 3.5%over the next two years.

These figures do concentrate on single family homes but if you would like similar information for other property types, such as apartments or patio homes, or specific geographical areas of Nanaimo or Parksville/Qualicum, then I would be more than happy to discuss those with you as well.

As always I hope you find these monthly newsletters informative and if at any time you or any of your friends, relatives or co-workers are looking for a professional realtor to help them buy or sell a home, or just have a real estate question, please call my personal cell, 250-739-1228, or drop me an email.